According to Wikipedia, the Trade and Development Bank of Mongolia (http://en.wikipedia.org/wiki/Trade_and_Development_Bank_of_Mongolia) is the oldest bank in Mongolia. This is further supported by a 2013 article on Mongolian bond yields. Yet it was founded less than a quarter century ago. However, Mongolia itself is over 100 years old.

What happened to all the Mongolian banks? I understand this is around the time of the Soviet collapse, but I find it hard to believe that every single bank in the nation crumbled. Herman, what happened?!


The Wikipedia article is inexact. The TDB is the oldest existing commercial bank in Mongolia. Before 1990 all the banks in Mongolia (and the Soviet Union in general) were state-owned banks.

The first bank in Mongolia was the Trade and Industry Bank of Mongolia, opened in June 1924. This bank became a possession of the Mongolian government in 1954 and was renamed the State Bank of Mongolia at that time. Since then it has been renamed the Bank of Mongolia, which is how it is known today. It is a central bank, owned by the government of Mongolia.

  • So no pre-communist commercial banks survived the communist takeover? They all must have been absorbed into the Bank of Mongolia then? – corsiKa Nov 19 '14 at 17:56
  • No, lots did, its just that they were converted to state banks over time. – Tyler Durden Nov 19 '14 at 18:25
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    What is the role of a commercial bank in a communist country? – Mark C. Wallace Nov 19 '14 at 18:36
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    Your third sentence makes it sounds like Mongolia was part of the Soviet Union, which it never was (though as the Mongolian People's Republic it was certainly strongly influenced by the Soviet Union). – Nate Eldredge Nov 19 '14 at 19:40
  • @MarkC.Wallace, commercial banks, unlike state banks, are free to finance privately held companies and individuals. Historically, communist states have limited the purchase and sales of foreign currencies, to regulate economic activity by limiting the outflow of local and influx of foreign capital. There usually aren't any commercial banks or they provide ad hoc financial services. Eventually, economic oppression forces them to regulate open currency exchange and commercial banks mediate the inversion of foreign taxpayer money back to private accounts in safe havens. – Filip Dupanović Nov 20 '14 at 1:40

You are referring to 2 Mongolias.

The State of Mongolia was formerly called the Mongolian People's Republic. Formerly a part of China, it proclaimed independence with the support of Russia. On March 13th 1921 a Provisional People's Government was established, and then on November 26th, 1924 the government proclaimed the Mongolian People's Republic. This was a Soviet satellite state.

A referendum took place on October 20, 1945, when Mongolia voted for independence.

After the breakdown of communist regimes in Europe in late 1989, Mongolia saw its own democratic revolution in early 1990; it led to a multi-party system, a new constitution of 1992, and transition to a market economy.

(From Wikipedia.)

So what you are referring to in 1990 is the "modern" Mongolia. And the banks of modern state of Mongolia would be from 1990 onwards logically.

But coins have been issued by the "Mongolian People's Republic" since at least 1925. Example: KM#1, 9, 21 and 27 as per Catalogue each of denomination 1 MONGO and KM#2, 10 and 16 of denomination 2 MONGO. "State" (modern) Decimal Coinage seems to start from 1994 with KM#122 of denomination 20 TUGRIK. This seems to correspond with the idea of the new state and its Banks starting off around 1990.

Note that I referred to the 2008 catalogue rather than the 2015 linked above.

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